Impacts:
Drinking water supplies to many areas has been affected.
The government forecast its lowest wheat crop for 12 years.
Australia's cotton production has dropped, with the smallest area planted in 20 years
20 cotton communities and 10,000 people directly employed by the cotton industry have been impacted by the drought.
The water shortage across eastern Australia was so acute it began to affect power supplies. Coal and hydro power generation require very large amounts of water. Issues for the power companies lead to price increases for the public.
Management Strategies
The agriculture minister announced the allocation of more than A$200m (£80m) to help businesses which service drought-stricken farmers, in addition last month to the A$910m in payments for 72,000 farmers affected by drought.
Australia in the past hundred years has relied solely on water from dams for agriculture and consumption. Now schemes like grey-water water-recycling, government rebates for home-owners to install water tanks, and tougher restrictions on industries have come into effect.
In November 2006 Perth completed a seawater desalination plant that will supply the city with 17% of its needs.
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